KNDS is discussing acquiring Mercedes-Benz's Ludwigsfelde plant, which employs about 2,000 workers.
Deal includes initial lease of part of the plant before full takeover to produce military vehicles with Mercedes vans.
KNDS is also in talks to acquire Volkswagen's Osnabrück plant, with Volkswagen exploring options after production ends in 2027.
Rafael Advanced Defense signed a late‑April LOI to buy the Osnabrück site, and VW CEO Oliver Blume confirmed advanced negotiations.